The Bank of Canada left its trendsetting overnight rate unchanged at 1.25%. There are many names for this rate including the benchmark rate and key interest rate, so it can be confusing. Whatever it is called, this rate influences bank prime rates upon which variable rate mortgages and lines of credit are priced.

Bank governor, Stephen Poloz, announced the rate would be unchanged citing uncertainly over trade further stoked by this week’s U.S. tariffs on steel and aluminum. While broad strength in Canada and the global economy may have justified a rate increase, caution over a potential trade war warranted a wait-and-see approach.

Existing borrowers with variable rate mortgage and lines of credit have a reprieve and new applicants are seeing significant discounts for variable rate mortgages as lenders compete for business.

Andrew Galler

Mortgage Associate
Cell: 403-771-0134